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Use the following table to answer the question below: The amount of total output produced from various combinations of labor and capital.  Units af Capital 1234150120160180 Units 2110260360390 of 3150360510560 Lebor 41704306306905160480710790\begin{array} { c c c c c c } & & { \text { Units af Capital } } \\ & & 1 & 2 & 3 & 4 \\& 1 & 50 & 120 & 160 & 180 \\\text { Units } & 2 & 110 & 260 & 360 & 390 \\\text { of } & 3 & 150 & 360 & 510 & 560 \\\text { Lebor } & 4 & 170 & 430 & 630 & 690 \\& 5 & 160 & 480 & 710 & 790\end{array} If labor is fixed at three units,how much does the second unit of capital add to total output?


A) 100
B) 150
C) 210
D) 360
E) none of the above

F) B) and C)
G) C) and E)

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out the table and answer the question below. Units ofLabor1234567 Total  Product −−−−−−66−−−−−−78−−−AverageProduct20−−−−−−−−−16−−−10MarginalProduct−−−30−−−10−−−−−−−−−\begin{array}{c}\begin{array}{c}\text {Units of}\\\text {Labor}\\\hline1 \\2 \\3 \\4 \\5 \\6 \\7\end{array}\begin{array}{c}\text { Total }\\\text { Product }\\\hline ---\\---\\66\\---\\---\\78\\---\end{array}\begin{array}{c}\text {Average}\\\text {Product}\\\hline20\\---\\---\\---\\16\\---\\10\end{array}\begin{array}{c}\text {Marginal}\\ \text {Product}\\\hline---\\30\\---\\10\\---\\---\\---\\\end{array}\end{array} Marginal product is negative when _____ units of labor are employed.


A) 5 units of labor are employed.
B) 6 units of labor are employed.
C) 7 units of labor are employed.
D) both b and c

E) C) and D)
F) None of the above

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Units ofLabor12345 Total  Product −−−−−−300−−−290AverageProduct−−−125−−−−−−−−−MarginalProduct100−−−−−−20−−−\begin{array}{c}\begin{array}{c}\text {Units of}\\\text {Labor}\\\hline1 \\2 \\3 \\4 \\5 \\\end{array}\begin{array}{c}\text { Total }\\\text { Product }\\\hline ---\\---\\300\\---\\290\\\end{array}\begin{array}{c}\text {Average}\\\text {Product}\\\hline---\\125\\---\\---\\---\\\end{array}\begin{array}{c}\text {Marginal}\\ \text {Product}\\\hline100\\---\\---\\20\\---\\\end{array}\end{array} In the table above,what is the marginal product of the fifth unit of labor?


A) 20
B) 50
C) 80
D) -10
E) -30

F) B) and C)
G) D) and E)

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Given the table below,diminishing returns begin with the  Number of  Workers  Total  Product  Average  Product  Morginal  Product 5−28−10−−3015420−−20−−22\begin{array}{cccc}\begin{array}{c}\text { Number of } \\\text { Workers }\end{array} & \begin{array}{c}\text { Total } \\\text { Product }\end{array} & \begin{array}{c}\text { Average } \\\text { Product }\end{array} & \begin{array}{c}\text { Morginal } \\\text { Product }\end{array} \\\hline 5 & -&28 & -\\10 & - & - & 30 \\15 & 420 & - &- \\20 & -& -&22 \\\hline\end{array}


A) 1st worker.
B) 5th worker.
C) 10th worker.
D) 11th worker.
E) 16th worker.

F) A) and B)
G) A) and C)

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Given the table below,the maximum amount that can be produced using 20 workers is  Number of  Workers  Total  Product  Average  Product  Morginal  Product 5−28−10−−3015420−−20−−22\begin{array}{cccc}\begin{array}{c}\text { Number of } \\\text { Workers }\end{array} & \begin{array}{c}\text { Total } \\\text { Product }\end{array} & \begin{array}{c}\text { Average } \\\text { Product }\end{array} & \begin{array}{c}\text { Morginal } \\\text { Product }\end{array} \\\hline 5 & -&28 & -\\10 & - & - & 30 \\15 & 420 & - &- \\20 & -& -&22 \\\hline\end{array}


A) 442 units.
B) 530 units.
C) 22 units.
D) 420 units.
E) 26.5 units.

F) C) and D)
G) D) and E)

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Marginal cost


A) measures how total cost changes when input prices change.
B) measures how total cost changes when one more unit of output is produced.
C) is less than average cost when average cost is decreasing.
D) both a and b
E) both b and c

F) D) and E)
G) C) and D)

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Above is a firm's average product of labor and marginal product of labor curves.The price of labor is $60 per unit.Given this,diminishing returns set in with the A) 3rd unit of labor. B) 6th unit of labor. C) 10th unit of labor. D) 12th unit of labor. E) 14th unit of labor. Above is a firm's average product of labor and marginal product of labor curves.The price of labor is $60 per unit.Given this,diminishing returns set in with the


A) 3rd unit of labor.
B) 6th unit of labor.
C) 10th unit of labor.
D) 12th unit of labor.
E) 14th unit of labor.

F) A) and B)
G) C) and E)

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The capital stock is fixed at 5 units,the price of capital is $60 per unit,and the price of labor is $20 per unit.  Units of  Units of  Labor  Output 21042664686010721280\begin{array} { c c } \text { Units of } & \text { Units of } \\\text { Labor } & \text { Output } \\\hline 2 & 10 \\4 & 26 \\6 & 46 \\8 & 60 \\10 & 72 \\12 & 80\end{array} Based on the above,how much does the 12th unit of output add to the firm's total variable cost?


A) $2.50
B) $4
C) $5
D) $20
E) $40

F) A) and B)
G) B) and E)

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Based on the following table,the additional cost of producing the 170th unit of output is:  Output Total Cost 0$30050800100105015016502002400\begin{array}{llcc} \text { Output} & \text { Total Cost } \\0 &\$300\\50&800\\100&1050\\150 &1650\\200 &2400\\\end{array}


A) $10.50
B) $11.50
C) $13
D) $15
E) none of the above

F) A) and D)
G) B) and C)

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Units ofLabor12345 Total  Product −−−−−−300−−−290AverageProduct−−−125−−−−−−−−−MarginalProduct100−−−−−−20−−−\begin{array}{c}\begin{array}{c}\text {Units of}\\\text {Labor}\\\hline1 \\2 \\3 \\4 \\5 \\\end{array}\begin{array}{c}\text { Total }\\\text { Product }\\\hline ---\\---\\300\\---\\290\\\end{array}\begin{array}{c}\text {Average}\\\text {Product}\\\hline---\\125\\---\\---\\---\\\end{array}\begin{array}{c}\text {Marginal}\\ \text {Product}\\\hline100\\---\\---\\20\\---\\\end{array}\end{array} In the table above,how much does the third unit of labor ADD to total output?


A) 100
B) 125
C) 150
D) 300
E) none of the above

F) B) and D)
G) A) and D)

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Given the table below,if capital is fixed at one unit,diminishing returns begin with the  Units of Capital 123 Units 180100120 of 2180220260 Labor 3270330390434042050053904905906410530650\begin{array}{l}\quad\quad\quad\quad\quad \text { Units of Capital }\\\begin{array} { c c c c c } & & 1 & 2 & 3 \\ \text { Units } & 1 & 80 & 100 & 120 \\\text { of } & 2 & 180 & 220 & 260 \\\text { Labor } & 3 & 270 & 330 & 390 \\& 4 & 340 & 420 & 500 \\& 5 & 390 & 490 & 590 \\& 6 & 410 & 530 & 650\end{array}\end{array} Amount of total output produced from various combinations of labor and capital.


A) first unit of labor.
B) second unit of labor.
C) third unit of labor.
D) fourth unit of labor.
E) none of the above

F) A) and B)
G) None of the above

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A firm produces 4,000 units of output using 500 workers.Marginal cost is $10,the wage rate is $160,and total fixed cost is $100,000.When output is 4,000 units,


A) average variable cost is decreasing.
B) average variable cost is increasing.
C) average total cost is decreasing.
D) average total cost is increasing.
E) both a and c

F) B) and E)
G) A) and D)

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A firm is using a single variable input,labor,with a given amount of a fixed input,capital.If the level of capital is decreased,


A) the total product curve of labor curve shifts downward.
B) the average product curve of labor curve shifts downward.
C) the marginal product curve of labor shifts downward.
D) all of the above
E) none of the above

F) C) and D)
G) A) and B)

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Units ofLabor12345 Total  Product −−−−−−300−−−290AverageProduct−−−125−−−−−−−−−MarginalProduct100−−−−−−20−−−\begin{array}{c}\begin{array}{c}\text {Units of}\\\text {Labor}\\\hline1 \\2 \\3 \\4 \\5 \\\end{array}\begin{array}{c}\text { Total }\\\text { Product }\\\hline ---\\---\\300\\---\\290\\\end{array}\begin{array}{c}\text {Average}\\\text {Product}\\\hline---\\125\\---\\---\\---\\\end{array}\begin{array}{c}\text {Marginal}\\ \text {Product}\\\hline100\\---\\---\\20\\---\\\end{array}\end{array} In the table above,what is the maximum amount of output that can be produced with two workers?


A) 50
B) 125
C) 150
D) 250
E) 320

F) A) and B)
G) A) and C)

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out the table and answer the question below. Units ofLabor1234567 Total  Product −−−−−−66−−−−−−78−−−AverageProduct20−−−−−−−−−16−−−10MarginalProduct−−−30−−−10−−−−−−−−−\begin{array}{c}\begin{array}{c}\text {Units of}\\\text {Labor}\\\hline1 \\2 \\3 \\4 \\5 \\6 \\7\end{array}\begin{array}{c}\text { Total }\\\text { Product }\\\hline ---\\---\\66\\---\\---\\78\\---\end{array}\begin{array}{c}\text {Average}\\\text {Product}\\\hline20\\---\\---\\---\\16\\---\\10\end{array}\begin{array}{c}\text {Marginal}\\ \text {Product}\\\hline---\\30\\---\\10\\---\\---\\---\\\end{array}\end{array} The marginal product of the fifth unit of labor is


A) 16.
B) 10.
C) 4.
D) -2.

E) None of the above
F) A) and D)

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Suppose that the firm's only variable input is labor.When 50 workers are used,the average product of labor is 50 and the marginal product of labor is 75.The wage rate is $80 and the total cost of the fixed input is $500.What is average total cost?


A) $0.825
B) $0.63
C) $1.80
D) $4.10
E) none of the above

F) A) and C)
G) D) and E)

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-Assume labor-the only variable input of a firm-has average and marginal product curves shown in the figure above.The price of labor is $1,000 per unit .At its minimum value,marginal cost is $___________. A) $1,000/2,025 B) $1,000/1,925 C) $1,000/1,800 D) $1,000/2,700 E) none of the above -Assume labor-the only variable input of a firm-has average and marginal product curves shown in the figure above.The price of labor is $1,000 per unit .At its minimum value,marginal cost is $___________.


A) $1,000/2,025
B) $1,000/1,925
C) $1,000/1,800
D) $1,000/2,700
E) none of the above

F) C) and D)
G) A) and E)

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Given the table below,as the number of workers increases from 10 to 15,output per worker  Number of  Workers  Total  Product  Average  Product  Morginal  Product 5−28−10−−3015420−−20−−22\begin{array}{cccc}\begin{array}{c}\text { Number of } \\\text { Workers }\end{array} & \begin{array}{c}\text { Total } \\\text { Product }\end{array} & \begin{array}{c}\text { Average } \\\text { Product }\end{array} & \begin{array}{c}\text { Morginal } \\\text { Product }\end{array} \\\hline 5 & -&28 & -\\10 & - & - & 30 \\15 & 420 & - &- \\20 & -& -&22 \\\hline\end{array}


A) increases from 290 to 420
B) increases from 28 to 29
C) decreases from 29 to 28
D) decreases from 30 to 26
E) none of the above

F) A) and B)
G) C) and E)

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Diminishing returns refers to the decrease in


A) profit that results from increases in output.
B) average total cost that results from decreases in input prices.
C) average product that results from increases in the variable input.
D) marginal product that results from increases in the variable input.
E) long-run average cost that results from increases in output.

F) B) and D)
G) A) and D)

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In the table below,the capital stock is fixed at 40 units,the price of capital is $15 per unit,and the price of labor is $80 per unit.  Units of  Units of  Labor  Output 540101001518020220\begin{array} { c c } \text { Units of } & \text { Units of } \\\text { Labor } & \text { Output } \\\hline 5 & 40 \\10 & 100 \\15 & 180 \\20 & 220\end{array} If the firm produces 180 units of output,what is total variable cost?


A) $1,200
B) $1,800
C) $14,400
D) $17,100
E) none of the above

F) A) and C)
G) All of the above

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